National Grid 2014 Annual Report Download - page 67

Strategic Report Corporate Governance Financial Statements Additional Information
Service contracts and policy on payment
for loss of office
In line with our policy, all Executive Directors have service contracts
which are terminable by either party with 12 months’ notice.
The contracts contain provisions for payment in lieu of notice, at
the sole and absolute discretion of the Company. Such payments
are limited to payment of salary only for the remainder of the notice
period with the exception of Nick Winser. In Nick’s case the value
of benefits would also be paid. In the UK such payments would
bephased on a monthly basis, over a period no greater than
12months, and the Executive Director would be expected to
mitigate any losses where employment is taken up during the
notice period. In the US, for tax purposes the policy is to make
anypayment in lieu of notice as soon as reasonably practicable,
and in any event within two and a half months of the later of
31December and 31 March immediately following the notice date.
In the event of a UK Director being made redundant, statutory
compensation would apply and the relevant pension plan rules
may result in the early payment of an unreduced pension.
On termination of employment, no APP award would generally
bepayable and any DSP awards would generally lapse. However,
the Committee has the discretion to deem an individual to be a
‘good leaver’, in which case an APP award would be payable
onthe termination date, based on performance during the
financialyear up to termination, and DSP awards would vest
onthe termination date. Examples of circumstances in which a
Director would be treated as a ‘good leaver’ include redundancy,
retirement, illness, injury, disability and death. Any APP award
would be prorated and would be subject to performance achieved
against the objectives for that year.
On termination of employment, outstanding awards under the
share plans will be treated in accordance with the relevant plan
rules approved by shareholders. Share awards would normally
lapse. ‘Good leaver’ provisions apply at the Committee’s discretion
and in specified circumstances, including redundancy, retirement,
illness, injury, disability and death, where awards will be released
to the departing Executive Director or, in the case of death, to their
estate. Long-term share plan awards held by ‘good leavers’ may
vest subject to performance measured at the normal vesting date
and are prorated. Such awards would vest at the same time as for
otherparticipants.
The Chairman’s appointment is subject to six months’ notice by
either party; for the other Non-executive Directors, notice is one
month. No compensation is payable to Non-executive Directors
ifrequired to stand down.
Copies of Directors’ service contracts and letters of appointment
are available to view at the Company’s registered office.
Dates of Directors’ service contracts/letters
ofappointment
Date of service contract/appointment
Executive Directors
Andrew Bonfield 1 November 2010
Steve Holliday 1 April 2006
Tom King 11 July 2007
John Pettigrew 1 April 2014
Nick Winser 28 April 2003
Non-executive Directors
Philip Aiken 15 May 2008
Nora Mead Brownell 1 June 2012
Jonathan Dawson 4 March 2013
Therese Esperdy 18 March 2014
Sir Peter Gershon 1 August 2011
Paul Golby 1 February 2012
Ruth Kelly 1 October 2011
Maria Richter 1 October 2003
Mark Williamson 3 September 2012
External appointments
The Executive Directors may, with the approval of the Board,
accept one external appointment as a non-executive director of
another company and retain any fees received for the appointment.
Experience as a board member of another company is considered
to be beneficial personal development, that in turn is of value to
theCompany.
65